How Delta Masters the Game of Overbooking Flights
This Story Was Originally Published on Dec 29, 2015.
Frequently Asked Questions
More from Making Sen$E
Why Does This Matter? Well Not Only Is This Better for the Company’s Reputation and Customer Satisfaction, but This Practice Avoids Hefty Fees. When an Airline Involuntarily Bumps Passengers, the Department of Transportation Requires Airlines Pay as Much as Four Times the Cost of Their One-Way Fare, Much More Than What Airlines Can Usually Get Customers to Agree to Voluntarily. Furthermore, Ticket Vouchers Cost the Company Far Less Than Actual Dollars.
Can You Win This Game? Behavioral Economics Says No
Why Does This Matter? Well Not Only Is This Better for the Company’s Reputation and Customer Satisfaction, but This Practice Avoids Hefty Fees. When an Airline Involuntarily Bumps Passengers, the Department of Transportation Requires Airlines Pay as Much as Four Times the Cost of Their One-Way Fare, Much More Than What Airlines Can Usually Get Customers to Agree to Voluntarily. Furthermore, Ticket Vouchers Cost the Company Far Less Than Actual Dollars.
